Interactive brokers account without tax residency anywhere, Is it possible?

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Seeker0Void

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Nov 18, 2021
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Hi Guys,

I'm in a bit of a situation here, I have an Interactive Brokers account with tax residency in a country I used to live in.

I left this country last year and haven't established yet a tax residence in a different country (Planning to do so later this year). They are asking me to confirm my details, which I'm worried about because I don't have tax residency anywhere.

I don't mind paying the 30% dividend tax for now, but mostly worried about getting my account closed and having to sell all my holdings, and moving all the funds to a bank.

Will they let me be on there without tax residency or will they force me to close the account? Any anyone had experience with something similar?

Thanks
 
Seeker0Void said:
Seeker0Void said:
I left this country last year and haven't established yet a tax residence in a different country (Planning to do so later this year). They are asking me to confirm my details, which I'm worried about because I don't have tax residency anywhere.
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Your tax residency is in your previous country. You have to exit properly and become non-resident for tax purposes in your previous country. It's best to do this when you leave the country, not years later.
 
Seeker0Void said:
Seeker0Void said:
Hi Guys,

I'm in a bit of a situation here, I have an Interactive Brokers account with tax residency in a country I used to live in.

I left this country last year and haven't established yet a tax residence in a different country (Planning to do so later this year). They are asking me to confirm my details, which I'm worried about because I don't have tax residency anywhere.

I don't mind paying the 30% dividend tax for now, but mostly worried about getting my account closed and having to sell all my holdings, and moving all the funds to a bank.

Will they let me be on there without tax residency or will they force me to close the account? Any anyone had experience with something similar?

Thanks
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Buy a fake utility bill as proof of address (or photoshop one of your old genuine bills). Problem easily solved.

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JohnnyDoe said:
JohnnyDoe said:
Buy a fake utility bill as proof of address (or photoshop one of your old genuine bills). Problem easily solved.
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It depends on where he is located and citizen. I'm in EU and they always wanted bank statement with visible address and performed CRS indicia.
 
zzzzzz said:
zzzzzz said:
Your tax residency is in your previous country. You have to exit properly and become non-resident for tax purposes in your previous country. It's best to do this when you leave the country, not years later.
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I have exited properly, I'm no longer a tax resident in the previous country. Not sure how it's related to my problem though.

JohnnyDoe said:
JohnnyDoe said:
Then produce a fake bank statement. Easy to buy on the web (not necessarily the dark one).
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But wouldn't that get me in trouble with the US tax authorities? I can't claim treaty benefits If I don't pay taxes in another country which means I will be potentially avoiding tax in the US (for example the 30% dividend tax). I'm not interested in illegally avoiding taxes, I just genuinely don't have any tax residence country right now and wonder how I should play it to keep my account open.
 
Seeker0Void said:
Seeker0Void said:
I have exited properly, I'm no longer a tax resident in the previous country. Not sure how it's related to my problem though.
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Apparently not. You're still using benefits of old tax residency at IBKR, you still have economic ties with your old country. When you exit properly, you have tax residency and tax id in a new country + document that states you're tax nonresident in your old country. There is no "I'm nowhere tax resident".
 
They're probably asking you to confirm your details because they've detected you're now regularly logging in from a new country.

Financial institutions expect you to be resident somewhere, so just become resident somewhere.

What's stopping you from initiating tax residence in your new country?

If you haven't yet arrived in your new country and need to be resident somewhere in the meantime, set yourself up in UAE in the interim.
 
zzzzzz said:
zzzzzz said:
Apparently not. You're still using benefits of old tax residency at IBKR, you still have economic ties with your old country. When you exit properly, you have tax residency and tax id in a new country + document that states you're tax nonresident in your old country. There is no "I'm nowhere tax resident".
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Yes, there is, I have hired a lawyer that is an expert specifically on taxation-disconnect from my former country to help me disconnect, and he said that if I disconnect properly from my former country I don't need an alternative tax residence in a new country to be protected from tax requirements. I'm going to remove the tax benefit from IBKR and already disconnected major economic ties with it.

globaljetset said:
globaljetset said:
They're probably asking you to confirm your details because they've detected you're now regularly logging in from a new country.

Financial institutions expect you to be resident somewhere, so just become resident somewhere.

What's stopping you from initiating tax residence in your new country?

If you haven't yet arrived in your new country and need to be resident somewhere in the meantime, set yourself up in UAE in the interim.
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You need to stay 183 days there to get tax residency, and I'm probably not willing to do it.
 
Seeker0Void said:
Seeker0Void said:
Yes, there is, I have hired a lawyer that is an expert specifically on taxation-disconnect from my former country to help me disconnect, and he said that if I disconnect properly from my former country I don't need an alternative tax residence in a new country to be protected from tax requirements. I'm going to remove the tax benefit from IBKR and already disconnected major economic ties with it.
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Where is your country of citizenship and country of previous residence?
 
I can believe you when you say that you're tax resident nowhere. This is possible for certain people, for example UK citizens can spend less than X days in the UK and be non-resident.

However, I don't think Interactive Brokers will accept this claim to be be resident nowhere. They will expect you to be resident somewhere. If you're able to successfully persuade them to accept that you're resident nowhere, then please let us know as that would be very interesting to a lot of people. Alternatively, go visit a private bank (if you're rich enough) and they may be more understanding of your unique situation.

Assuming you need to provide a tax residence to IBKR, your options are:
1. Your previous country - If you're so confident that you're not liable to pay taxes there, then there's probably not much harm in continuing to list it as your residence for a few more months until you've established yourself in your new country.
2. An interim country - You don't need to spend 183 day there - you can legitimately be a resident in this country (such as UAE) for a few months - but you probably want to have documentation as evidence.
3. Your new country - Why not just initiate your residence there already?
 
JohnnyDoe said:
JohnnyDoe said:
Buy a fake utility bill as proof of address (or photoshop one of your old genuine bills). Problem easily solved.
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Have you experienced any issue since posting this? Have you tried this with other brokers like CS for example? What would be the worst case scenario if they did find out?
 
Deepbarrels said:
Deepbarrels said:
You think they could block the account if they found out and you'd lose all your funds or no chance?
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It's more likely that they credit money on your account in error that they find that you gave them a fake bill.
In the last 20 years, it happened me once that a big bank credited half a million $ on my account, and requested it to be returned only one year later rof/% Money that I invested in a Ponzi scheme and doubled. Never anyone raised an eyebrow for the utility bills.
I regret having returned the $500K to the bank, I was too young and naive stupi#21
I also once received an unexpected $17m credit, with another bank, but I didn't have the time to withdraw it. That's why you should setup alerts for incoming payments 😀

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Deepbarrels said:
Deepbarrels said:
hahaha damn I wish I was a client of your banks
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Both were very big high street banks. The first one still exists, the second is gone. It still happens with any big bank, but you won't hear too much about such events. For example, in 2020 Citi sent in error $900m:
https://www.reuters.com/article/bus...early-900-million-gaffe-us-jud-idUSKBN2AG1TG/

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AlicaFunk said:
AlicaFunk said:
how and why would they do it? never experienced it sadly 🙁
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Ref to the Infinite Monkey Theorem, stemming from “Mécanique Statistique et Irréversibilit锝 by Emile Borel, 1913.
The non-infinite but still quite large group of bank monkeys is ruled by controlled chaos and limited free will, resulting in such, and worse, errors being quite frequent.

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